Tweet *****'Tis the 4th quarter earnings season of course, which is like Halloween, Thanksgiving and Christmas all rolled into one.
It's Halloween when we let other people scare us about it. Because in trading as in life: Caution is a friend, Fear is an enemy. Unfortunately a lot a traders/investors don't do enough homework which means that they have to trust someone else's opinion more than they trust themselves. This includes the broker/ advisors whom we pay and follow. Even if we don't follow markets daily we should know what our money is doing so a monthly checkup will keep monsters away and educate us as well as our broker.
It's Thanksgiving when we know we're on the right side of the trade, and our investments are doing well. It's when we also have trusted our targets for profit taking and manage our stops wisely. On a draw-down, you'll be thanking your diligence; on a breakout you'll be doing the same because if we know what we're looking for, surprises will be the positive kind and we all know that, no matter how much work we do, often this job can seem thankless.
It's Christmas when we have earnings that surprise with "beat the street" gifts like $GOOG, $CMG last week and $NFLX today with monster breakout gains that leave us in wonder and thank our lucky star. We earned it!
Come to think of it, if we all do our homework, we could enjoy these "holidays" four times a year, not just one.
Happy Spooking, Thanking & Prancing
The Daily Pick - $AAPL $AMZN $CMG $BIDU $LNKD $NFLX $PCLN
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